Foreign capital outflows good for Thai fiscal policy

[webfact]

Foreign capital outflows good for Thai fiscal policy
By Digital Media



BANGKOK, June 12 – The current outflows of foreign capital will be a boon to Thailand’s fiscal policy, especially the policy interest rate, Deputy Prime Minister/Finance Minister Kittiratt Na-Ranong said today.

He said foreign investors moved their capital out of the country after profiting in the Thai stock and bond markets in the last few years.

At least US$12 billion in foreign capital was transferred into Thailand since late last year for short-term investment, consequently putting pressure on the baht which successively surged to US$28-30 against the dollar, he said.

Mr Kittiratt said it would be unnecessary for the government to implement some of its fiscal measures but all parties concerned have yet to closely monitor the economic situation.

A Krungsri Bank foreign exchange trader this morning said the baht was at Bt30.93/95 against the dollar, adding that it was the weakest in eight months when it recently slipped to Bt31.03/05 against the greenback.

He predicted the baht to move at around Bt30.90-31.08 against the dollar today. (MCOT online news)

-- TNA 2013-06-12

[MacWalen]

That's what we need, weaker Baht is good. I don't know if it lasts though. Thailand is an attractive market so money will keep flowing in.

[mahtin]

Well, it's good inasmuch as I just got 41 for my Euro instead of 38 last time.

[yoshiwara]

The Deputy PM fails to point out that a drop in FDI drops the price of bonds and raises the interest rate on them thus raising the price of capital/debt in Thailand. Plus given his choice of words further encouragement of FDI to bugger off has a good start.

[waza]

"BANGKOK, June 12 – The current outflows of foreign capital will be a boon to Thailand’s fiscal policy, especially the policy interest rate, Deputy Prime Minister/Finance Minister Kittiratt Na-Ranong said today."

I wonder where the 660 billion baht for the rice scam came from? Hopefully not from the sale of government bonds to foreign investors because that would be bad for fiscal policy according to this logic.

[givenall]

That's what we need, weaker Baht is good. I don't know if it lasts though. Thailand is an attractive market so money will keep flowing in.

Don't forget it's good no matter, nothing is bad for rich. But who cares about othrs

[Lancelot]

That's what we need, weaker Baht is good. I don't know if it lasts though. Thailand is an attractive market so money will keep flowing in.

The US Fed hinting that QE is winding down will will weaken the baht as well.

[Markaew]

That's what we need, weaker Baht is good. I don't know if it lasts though. Thailand is an attractive market so money will keep flowing in.

The US Fed hinting that QE is winding down will will weaken the baht as well.

Yes, no need to prop up Obama's false economy any longer. He's been reelected.

[DonaldBattles]

The money traders of the world continue to control all currencies. If Thailand ever decided to do anything it would long be too late. The rice and water scam is going to take a big toll and could bring the governement down. Historically, Taksin is the only persone lected to ever start a second term. The higher ups did away with him but he would live to be top of the pile again. I rather doubt that he would risk his life by coming back. There are not enough body guards to porotect him. Maybe like Sadat one of the guards would turn on him. BLOODY AMAZING. I think the party is coming to an end.

[belg]

what i heard on bloomberg is that thailand lost 21 billion dollars of value stock market overnight

and this is a good thing according to the finance minister?

[Naam]

what i heard on bloomberg is that thailand lost 21 billion dollars of value stock market overnight

and this is a good thing according to the finance minister?

i don't think that Thailand invested in the stock market.

[waza]

what i heard on bloomberg is that thailand lost 21 billion dollars of value stock market overnight

and this is a good thing according to the finance minister?

i don't think that Thailand invested in the stock market.

Oh! the sermantics

[rodroy]

what i heard on bloomberg is that thailand lost 21 billion dollars of value stock market overnight

and this is a good thing according to the finance minister?

That means all investors' local or foreign have lost that much in equity value not in money in hand!

Could make it back could loose more! Nature of the beast!

[yoshiwara]

The money traders of the world continue to control all currencies.

Ahoy! another conspiracy theory up ahead! Edited June 12, 2013 by yoshiwara

[lostmebike]

what i heard on bloomberg is that thailand lost 21 billion dollars of value stock market overnight

and this is a good thing according to the finance minister?

Well if above is true and ....

'Mr Kittiratt said it would be unnecessary for the government to implement some of its fiscal measures but all parties concerned have yet to closely monitor the economic situation'.

and this is true, then it's business as normal. Bury your head in the sand and wish the problem away.

[Pib]

I'm so confused....one week capital inflows greatly exceed outflows and some govt officials say it's a good thing; then another week capital outflows greatly exceed inflows and some govt officials say it's a good thing. I guess when it comes to govt media releases, it's always good news no matter how hard it might be to believe the news. Maybe the Tourism Authority of Thailand really writes all the govt announcements/media releases since tourism figures for Thailand are always great, rising, always a silver lining, etc.

[bigbamboo]

All news is good news with Kittirat.

[Donnie Brasco]

The banks, yoshiwara, The Banks are responsible for the whole kit and caboodle of geopolitical entanglements. The whole lot.

You and your buddies are always on about Yingluck being her brother's puppet.

Well, if you step back and apply a globalist perspective to these things . . . . . . Dude, l'il du-u-ude. They are ALL puppets.

All of them.

Every bloody politico, no matter how rich or how powerful.

They remain forever at the beckon-call of world financiers.

It does not begin and end with Thailand l'il fella.

Try Basle's BIS, you're supposedly an educated individual.

Or not.

[yoshiwara]

The banks, yoshiwara, The Banks are responsible for the whole kit and caboodle of geopolitical entanglements. The whole lot.

You and your buddies are always on about Yingluck being her brother's puppet.

Well, if you step back and apply a globalist perspective to these things . . . . . . Dude, l'il du-u-ude. They are ALL puppets.

All of them.

Every bloody politico, no matter how rich or how powerful.

They remain forever at the beckon-call of world financiers.

It does not begin and end with Thailand l'il fella.

Try Basle's BIS, you're supposedly an educated individual.

Or not.

...and close behind dressed in an old rancid dress by our conspiracy theorists is our other friend 'the world financiers'.

And we know what's in the third float don't we?

[Donnie Brasco]

What on Earth are you on about l'il fella ;-?

[Naam]

The money traders of the world continue to control all currencies.

Ahoy! another conspiracy theory up ahead!

do you deny that the money traders spread the swine flu and the

SARS virus?

[Lancelot]

The money traders of the world continue to control all currencies.

Ahoy! another conspiracy theory up ahead!

do you deny that the money traders spread the swine flu and the

SARS virus?

Well they do. And they also crept into my room and changed the channel on my TV from Bloomberg to Fox News!

Its over guys

[i claudius]

I'm so confused....one week capital inflows greatly exceed outflows and some govt officials say it's a good thing; then another week capital outflows greatly exceed inflows and some govt officials say it's a good thing. I guess when it comes to govt media releases, it's always good news no matter how hard it might be to believe the news. Maybe the Tourism Authority of Thailand really writes all the govt announcements/media releases since tourism figures for Thailand are always great, rising, always a silver lining, etc.

Always good news in Thailand ,never bad.

[sputjam]

All these third world country should really impose a capital gains tax for these short term investors who profited from hiking the value of the stock market and properties and exit before any crash.

Its time these countries earn some money from the locusts.

After the asian financial crisis in 1997, hedge funds went into indonesia, bought banks and other assets cheaply following the IMF guidelines, and sold these to other foreign banks for hefty profits and Indonesia gained nothing from the deal.

[yoshiwara]

All these third world country should really impose a capital gains tax for these short term investors who profited from hiking the value of the stock market and properties and exit before any crash.

Its time these countries earn some money from the locusts.

After the asian financial crisis in 1997, hedge funds went into indonesia, bought banks and other assets cheaply following the IMF guidelines, and sold these to other foreign banks for hefty profits and Indonesia gained nothing from the deal.

I don't think Thailand needs yet another comedian economist.

[kblaze]

All these third world country should really impose a capital gains tax for these short term investors who profited from hiking the value of the stock market and properties and exit before any crash.

Its time these countries earn some money from the locusts.

After the asian financial crisis in 1997, hedge funds went into indonesia, bought banks and other assets cheaply following the IMF guidelines, and sold these to other foreign banks for hefty profits and Indonesia gained nothing from the deal.

[Naam]

Its time these countries earn some money from the locusts.

[Pib]

I just read a news article that the Bank of Thailand intervened in the FOREX market today when the baht went over 31/USD...the BOT sold dollars to help push the rate back below 31. Recommendation to BOT: stop selling dollars...let the Thai baht depreciate...it's been nice to see a USD/THB exchange rate above 31.

I wonder if the 31 baht/USD figure is some key trigger level for the BOT...like maybe some agreement with the Finance Ministry although the Finance Ministry and Thai exporters seemed to want the exchange rate to be around 32 based on news articles a few weeks ago.

[DonaldBattles]

Who the hell would want to invest in a corrept stock market. What goes around is coming around. I think the west is bailing out of the Thai market. Crazy as usual. Maybe George Soros is looking to come back again.

[farang000999]

99/100 when someone complains about corruption, it is because they are jealous they that are not benefiting from it.